STAND. COM. REP. NO. 1383-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2843
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2843, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE HAWAIIAN HOMES COMMISSION
     ACT, 1920, AS AMENDED,"

begs leave to report as follows:

     The purpose of this bill is to provide for a more effective
administration and disposal of Hawaiian home lands by:

     (1)  Clarifying the Department of Hawaiian Home Lands'
          (DHHL) authority to lease out improvements situated on
          Hawaiian home lands; and

     (2)  Providing flexibility in the manner in which DHHL may
          dispose of Hawaiian home lands to a native Hawaiian or
          to an organization or association controlled by native
          Hawaiians.

     Your Committee circulated a proposed H.D. 2 version of this
bill for purposes of discussion and public hearing.  The proposed
H.D. 2 version also allows licenses granted by DHHL to be
considered franchises for the purpose of installing
infrastructure on Hawaiian home lands.

     DHHL testified in support of the proposed draft.  GTE and
Hawaiian Electric Company and its subsidiaries submitted comments
on the proposed draft.


 
 
                                 STAND. COM. REP. NO. 1383-00
                                 Page 2

 
     Upon further consideration, your Committee has amended this
measure by incorporating the amendments made in the proposed H.D.
2 version.  Additional amendments were made to the proposed H.D.
2 version, including:

     (1)  Clarifying that the license be considered a non-
          exclusive franchise;

     (2)  Changing the effective date of this measure to July 1,
          2005, to facilitate further discussion; and

     (3)  Making technical, nonsubstantive amendments for
          purposes of clarity and style and to conform to
          drafting conventions.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2843, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2843, H.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair